In his remarks, EU commissioner for agriculture and rural development Phil Hogan said that expanding the agriculture and food market in the archipelago had caught the bloc’s attention.

The market had risen by 57 percent from 2011 to 2015, and the EU expects food and beverage-related spending to account for almost half of annual household spending by 2030.

“There is a growing consumer population here, estimated at 45 million Indonesians today, which is expected to rise to 135 million by 2030. These people are looking for diverse, high-quality products to feed their families,” Hogan said during the 6th EU-Indonesia Business Dialogue on Tuesday.

This presented European agri-food businesses with opportunities, he said, adding that Indonesian producers could obtain wider access to the European market.

Household consumption is Indonesia’s most important economy driver.

Data from the Central Statistics Agency (BPS) shows that household consumption has traditionally contributed to more than half of the economic growth, with its latest contribution standing at 55.3 percent in the third quarter.

Agriculture — along with forestry and fishery — also played an important role as it became the second business sector that posted the highest quarterly growth after transportation and warehousing.

Hogan claimed he had the support of 38 representatives of EU agri-food businesses active in sectors with large potential in Indonesia. While some represent large companies, others come from small enterprises.

“Many of these businesses are interested in investing in Indonesia,” he said.

The food industry and food crop and plantation industry are among the top 10 preferred foreign direct investment (FDI) sectors, according to the Investment Coordinating Board (BKPM).

No data was immediately available regarding the investment made by EU companies in the two industries, but the Indonesian Chamber of Commerce and Industry (Kadin) reports that FDI from the bloc has amounted to US$14.7 billion for the past five years.

However, despite the flourishing outlook, Hogan said the companies were hoping to see improved market access conditions, including in transparency and business certainty.

The Indonesian government itself has made a friendlier business climate as one of its goals. It has issued 13 economic policy packages so far, and they have helped boost Indonesia’s position to 91st place in World Bank’s Ease of Doing Business Index this year from 106th place last year.

Hogan also specifically highlighted the halal legislation, claiming that it was a concern for EU operators. The EU proposes that mandatory labeling of halal and non-halal should be made optional.

Meanwhile, Kadin vice chairman for international relations Shinta Kamdani acknowledged that the halal law had faced many objections from local and foreign companies as it required certification from

the upstream industry all the way down to manufacturers, raising business costs.

Kadin has recommended a revision of the law to the government. The law had been approved in 2014, but implementation is pending due to many constraints.

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